Summary:
The property lies in the Northern Appalachian Coal basin in the Appalachian Plateau physiographic province. The coal deposits in the eastern USA are the oldest and most extensively developed coal deposits in the country. The coal deposits on the properties are Carboniferous in age, being of the Pennsylvanian system. Overall, these Carboniferous coals contain roughly two-fifths of the bituminous coal deposits in the United States and extend over 1,448 kilometers from northern Alabama to Pennsylvania and are part of what is known as the Appalachian Basin. The Appalachian Basin is more than 402 kilometers wide and, in some portions, contains over 60 coal seams of varying economic significance.
Seams of economic significance typically range between 0.3 meters to 2.4 meters in thickness, with relatively little structural deformation. Regional structure is typically characterized by gently dipping strata to the northwest at less than one percent. Local anticline and syncline structures are present on the property with seam dips up to 5 percent.
Seams of the Allegheny Formation have historically been mined in the Pennsylvania region with the Upper Freeport seam being one of the principal seams in the formation. Coal from the area has historically sold in thermal and metallurgical markets.
Future operations at the Mon Valley properties will extract the Upper Freeport coal seam, which covers large areas of Pennsylvania, Ohio, Maryland, and West Virginia. The Upper Freeport seam is situated at the top of the Allegheny Group of the middle Pennsylvanian period (307-315 million years ago). The top of the Upper Freeport seam is commonly used as the marker between the top of the Allegheny Formation and the overlying Upper Pennsylvanian Conemaugh Group. The Allegheny Formation is made up of laminated cyclothemic sequences of coal, shale, limestone, and clay. The Upper Freeport seam lies generally around 183 meters below the Pittsburgh seam. Deposits associated with the Upper Freeport are often irregular and dislocated deposits (formed in domed peat swamps commonly referred to as "peat islands").
The primary structural controls on the Upper Freeport coal basin are localized syn-depositional anticlines and synclines that directly influence the accumulation of peat bogs. These structures create gently folded and rolling coal strata. The axis of the Waynesburg and Port Royal (Irwin) synclines pass through the center and eastern portions of the properties with a trend and incline to the Northeast. The Amity, Murrysville, and Belle Vernon anticlines (listed from west to east) reside to the center and western portions of the properties. These anticlines often coincide with thicker coal seams where peat accumulated in domes along the anticlinal crest. It is understood that local anticlines represent the upthrown side of syn-depositionally active deep faults. Inversely, fluvial channel sediments were deposited on the structural downthrown side within synclines.
Within the Pangburn, Shaner, and Fallowfield mine-plan areas, the Upper Freeport is typically 183 meters to 335 meters below the ground surface. Mine access is therefore to be provided by shaft and slope development. The planned Pangburn shaft depth is approximately 195 meters in depth. The shaft depths at the projected locations for the Shaner and Fallowfield shafts range from approximately 232 meters to 268 meters.
Mineralization
The coal to be produced at the Mon Valley Complex is typically high-volatile (>31% volatile matter) bituminous coal.
Deposits
Historic underground mining has occurred in the overlying Pittsburgh Seam on this property. Contour surface mining on the Pittsburgh and Redstone outcrop has occurred within the areas projected for the coal refuse disposal area, the slope portal area and the preparation plant area. The three proposed mines (Pangburn, Shaner, and Fallowfield) are all projected to be deep mines in the Upper Freeport seam. Mining is projected in areas where the total seam thickness exceeds 1.2 meters. Areas of sandstone washout and seam thinning have been excluded from projections by MM&A personnel. Additional exploration could identify additional geologically limiting features, which could alter the proposed mine plan. The Upper Freeport seam in the projected areas ranges from 0.7 meters to 3.1 meters thick and averages 1.95 meters thick.